Nektar Therapeutics said it signed a new agreement with subsidiaries of Baxter International Inc. to develop new PEGylated therapeutics for haemophilia. The programme would commence its preclinical development in 2008.

Under the terms of the expanded agreement, Nektar will receive up to $44 million in upfront and milestone payments, funding of research and development, and manufacturing revenues during research, clinical development, and commercialisation. Nektar will also receive royalties on end product sales.

This is the second agreement between Nektar and Baxter to work together on innovative therapeutics for haemophilia patients. The two companies announced their initial agreement in September of 2005 to develop PEGylated therapeutic forms of clotting proteins to treat haemophilia A.

"We are pleased to expand our partnership with Nektar," said Hartmut J. Ehrlich, M.D., vice president, global research and development, BioScience business, Baxter. "Partnering with world-class science and technology companies is one of the ways Baxter continues to advance our product development."

Baxter will be responsible for the development and commercialisation of the product and Nektar will be responsible for the technology development used in the product including the provision of clinical and commercial PEG reagents. Nektar PEGylation technology has already been successfully applied to eight marketed products in the United States and Europe.

"We're pleased to work on innovative PEGylated therapeutics with Baxter, an exceptional partner and a leader in the haemophilia space," said Hoyoung Huh, M.D., Ph.D., chief operating officer and head, PEGylation Business Unit, Nektar. "This agreement highlights our commitment to collaborate with market leaders such as Baxter in the development of groundbreaking therapeutics."

Nektar Advanced PEGylation has the potential to improve the safety and efficacy of therapeutic agents by increasing drug circulation time in the bloodstream, decreasing immunogenicity and dosing frequency, increasing bioavailability and improving drug solubility and stability. It is based on the use of non-toxic polyethylene glycol (PEG) polymers, which can be attached to most major drug classes, including proteins, peptides, antibody fragments, small molecules, and other drugs and is used in eight marketed products in the US and Europe today.